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Mr Gideon Etireri is a highly qualified and experienced professional with multiple certifications in the field of accounting and taxation. He has a strong educational background, having completed an MBA in Finance from the University of Liverpool in the UK. He started his career at Deloitte, a renowned accounting firm, and currently holds various positions at Expro Group, including Region Tax Manager, Region Finance Manager, and Country Finance Manager.

During a recent episode of the Access Bank SMEDigest radio program, Mr Etireri discussed the challenges faced by small businesses in meeting their tax obligations in Nigeria. He highlighted the importance of understanding tax laws and planning for tax payments in order to minimize cash tax payments for small and micro businesses. He emphasized that tax is an inevitable civic duty that should be planned for, just like people plan for their financial futures through insurance.

In the interview, Mr Etireri also provided a clear definition of MSMEs (Micro, Small and Medium Enterprises) in Nigeria. He explained that micro businesses employ between one to nine people, small enterprises employ between 10 to 49 people, and medium scale businesses employ between 50 and 250 people. However, for the purpose of the discussion, he focused on micro and small businesses, as these are more prevalent in Nigeria.

One of the key issues discussed was the problem of multiple taxation in Nigeria. Mr Etireri acknowledged that multiple taxation has been a major challenge in the country’s tax system, affecting businesses of all sizes. He noted that unless there is a deliberate focus on eliminating multiple taxation through legislative reforms, the problem will persist. He also mentioned that many small businesses resort to unconventional methods to settle their taxes in order to avoid the burden of multiple taxation.

To address the issue of multiple taxation, Mr Etireri emphasized the importance of small businesses operating within the tax laws and taking advantage of the government’s incentives. He explained that there are various tax incentives available for small businesses, but many of them are not aware of or utilize these incentives. He used the analogy of an air-conditioned room, where only those inside the room can benefit from the cooling. Similarly, only structured and formal small businesses can access the benefits and incentives provided by the government, while informal businesses miss out on these opportunities.

Mr Etireri also highlighted the need for small businesses to maintain proper books of accounts and financial statements. He explained that many small businesses in Nigeria do not keep proper accounts or file their tax returns, which hinders their growth and prevents them from accessing tax benefits and funding opportunities. He mentioned that small businesses with annual revenues below N25 million are exempt from tax and filing tax returns. However, without proper accounting practices, it is challenging for businesses to accurately determine their revenue and utilize this exemption.

In response to a question about the bigger issue between a lack of structure or a lack of information, Mr Etireri stated that both issues go hand in hand. He emphasized the importance of having proper structure and information in order to take advantage of available incentives. He mentioned the availability of cloud accounting software that can assist small businesses in maintaining proper accounting structures and accessing real-time information. These software applications can enable businesses to make informed decisions, plan their taxes, and access incentives and funding opportunities.

Regarding the eligibility of micro and small businesses to pay taxes, Mr Etireri explained that any business that makes a profit is expected to pay tax. However, the government has made it easy for small businesses by exempting those with annual revenues below N25 million from tax payments. Unfortunately, many small businesses are unaware of this exemption or do not have the structure in place to take advantage of it. Mr Etireri stressed the need for small businesses to take responsibility for their own growth and not solely rely on the government for support.

In conclusion, Mr Etireri provided valuable insights and solutions to the challenges faced by small businesses in meeting their tax obligations in Nigeria. He highlighted the importance of understanding tax laws, planning for taxes, maintaining proper accounting structures, and utilizing available incentives. He also mentioned the role of accounting professionals and cloud accounting software in assisting small businesses in overcoming these challenges. Ultimately, by being proactive and informed, small businesses can navigate the tax system effectively and achieve sustainable growth.

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